10 Reasons to Invest in Cape Verde Property

Showcasing the property market in Cape Verde for those interested in the archipelago for an investment property purchase

We’ve never heavily focused on Cape Verde – not because we don’t like or rate the destination, but because it just doesn’t have the expat lure.  It’s an exceptional place for a holiday, a wonderful place for an investment property and it’s certainly a destination you should consider examining in 2008 if you’re looking for somewhere to invest your real estate cash.  But if you want an ideal location in which to live and work overseas, there are better places!

So, leaving that point aside for the time being – here are 10 reasons to invest in Cape Verde property even if you don’t want to go and live in the archipelago!

1)Property in Cape Verde is for sale at a fraction of the cost of real estate in the UK, Spain or Cyprus for example, and it offers very good value for money.  Because so many developments are under construction and development on the main islands, you can buy off plan early on and not only benefit from low entry costs but enjoy the option of buying and reselling, or ‘flipping’ before the property is even completed.  This approach allows successful investors to realise a gain on their investment within a very short space of time.

2)The climate in Cape Verde is practically perfect year round.  This means if you own a home in Cape Verde you can holiday in it whenever the mood strikes, and if you’re buying property for investment purposes, you have a very long season which can push up your rental yield margins significantly.

3)Accessibility to the archipelago is improving all the time.  There are now direct flights from the UK with the flight time taking around 5.5 hours, and increasing numbers of holiday companies have the islands in their sights so this bodes well for long term maintenance of accessibility levels.  Additionally, there is no jet lag!

4)Millions of euros are being ploughed into Cape Verde to transform the landscape into one where affluent tourists will be happy to vacation.  A lot of this money is coming from private investment because the economic and political stability of the nation is so strong and the environment right for foreign direct investment commitment.  Much of the money is being spent on travel and tourism related projects such as the development of marina, golf courses, water parks and so on.  This increases the appeal of the islands which in turn increases a property investor’s ability to rent out their real estate.

5)The cost of day to day living in Cape Verde is very affordable and even in resorts where locals complain of ‘tourist prices’ being charged, tourists are unlikely to notice as prices are still well below those in the UK for example!

6)The World Travel and Tourism Council predict up to a 6.2% average annual increase in the number of arrivals in Cape Verde over the next decade with some local sources predicting up to 500,000 arrivals by 2015...naturally this bodes well for those with property assets as increasing demand means decreasing vacancy rates and improving yields.

7)You can get mortgages to buy property in Cape Verde from local banks.  Usually up to 85% LTV is available – but of course this depends on personal circumstances.

8)Costs and fees associated with purchase comes to a maximum of 7% - this is far better than in the majority of other property hotspots around the world…

9)An increase in demand for properties for sale is supporting an emerging real estate market which is being buoyed up by international money...and now is a relatively quiet time in terms of international demand for homes overseas because of global affordability constraints – so this is positive news for the sustainability of demand in Cape Verde…

10)And finally, you can achieve a best of both worlds scenario if you do go ahead and buy a property in Cape Verde.  You may not want to love and work on the archipelago year round, so you can have the benefits of a holiday home in the sun AND rent your property out when you’re not using it…